Capital gains tax 'reasonably normal' - expert

08 Jul 2011 09:07p.m.

Mike wrote:

Why worry about the NZ economy when Labour/Green were recommending NZ invest in overseas high-fliers like Madoff as Madoff ticked all the boxes for Cullen.

It had high returns.
It was high risk.
It was diversifying.
It was not investing in NZ
It lost billions for NZ $$$$

ACC/Kiwisaver lost almost $30 billion before the last election thanks to the Cullen policies. Today the economic policy from Labour cant even add 2+2, and this qualifies them as finance spokespersons? Eg claims that incomes so low they paid $1500 tax are all millionaires. By this measure every beneficiary should be taxed to oblivion.

The capital gains tax suggested includes huge loopholes.

Farms have the family living on them, ie family home so will be excempt. Businesses will start having owners living on the premises to be excempt. If capital gains are taxable, capital losses will be deductable. If like GST then capital losses will lead to huge IRD refunds. The $4.5 is pure garbage figure hatched by lunatics.

IRD already can tax capital gains.

If your a trader then income generated from trading is taxable. Eg if you trade family homes for capital gains, labour wants to stop this being taxable so their friends who bought them dinners wont have to pay as much tax. Labour is cheap, probably only cost a couple of dinners to buy this policy.

08 Jul 2011 05:36p.m.

Clarke wrote:

There is a hell of alot of money to be made out of erasing National mistakes, get rid of the tax cuts for the wealthy... even if we take it back to 39 percent its still one of the three lowest tax rates for economically developed countries. The rich in New Zealand are overpriveldged and just watch them complain on this site about how hard done by they and their business's are. They were the ones who caused the worldwide recession in the first place, and now they have gone into hiding with National creating more and more corporate welfare such as the 90 right to fire act, its upcoming proposals on youth wage for 18-19 year olds which works out to be worth less than the dole with an accomodation supplement. National are clueless and always have been, their unsucessful tax switch has cost the country around 15 Billion dollars in lost revenue according to opposition spokesmen and independent experts. National will now go through and have a wholesale fire sale on all New Zealand assets... even those these assets are owned by the tax payers and not John Key and his upper class brats.

08 Jul 2011 04:11p.m.

Stephen Berry wrote:

It seems that the economic distortion which lead to a bubble in the housing market is in part caused by the lack of taxation on housing as opposed to other forms of investment. However, the solution is not to introduce even more taxation by introducing a capital gains tax. The solution to to reduce and eventually eliminate taxation of other forms of investment. This will create just as level a playing field without increasing the already suffocating amount of Government interference in the economy. The solution to our economic woes and the Government deficit are both the same: Cut taxes, get the Government out of our lives and slash state spending!